The ONLY 2 Moving Averages You Need for Day Trading!

Summary

The video presents a simple intraday trend-following approach using the 9-period and 20-period exponential moving averages (EMAs) on 5-minute charts.

Strategy

• Why EMAs: The presenters say EMAs respond faster than simple moving averages, making them more suitable for day trading.
• Trend filter:
  • Consider long trades when price is above both the 9 EMA and the 20 EMA.
  • Consider short trades when price is below both.
  • Avoid trading when price and the averages are choppy, or when the averages repeatedly cross and tangle.
• Entry approach: Rather than entering on a 9/20 crossover, which may come late, wait for a pullback toward the area where the averages narrow, then look for the trend to resume. For a long trade, the video also advises checking that price closes above the 9 EMA.
• Risk management: Place a defined stop near the pullback’s candle structure, or use a move back through the 20 EMA as an invalidation signal. The presenters describe pullback entries as offering more controlled risk.
• Exit or avoid signal: If the averages begin crossing back and forth and market “noise” develops, the trend setup may no longer be valid. Avoid or exit rather than forcing a trade.

Examples and instruments mentioned

• Constellation: Shown in two examples on 5-minute charts. One illustrates a pullback entry and a controlled stop; another shows a cleaner trend earlier in the day, followed by choppy, less-tradable action in the afternoon.
• The approach is said to apply to stocks, futures, and Bitcoin. No specific futures contract, Bitcoin price, or ticker symbol is given.

Key numbers and cautions

• The indicators are the 9-period EMA and 20-period EMA.
• No prices, returns, win rates, or other performance statistics are provided.
• Don’t rely on the moving-average crossover alone for entry; it may signal after much of the move has already occurred. Avoid tangled averages and sideways action.

Presenters and sources: TraderTV Live desk. Neil is thanked in the subtitles, but the main speaker is not identified.